Ray Allen contract: One year plus a player option

The widespread assumption was that, if Ray Allen signed with the Heat rather taking a more lucrative offer with the Celtics, he would sign for as much as he could get. That would have been meant three years and roughly $9.5 million, and that’s what you probably read in a lot of places.

If you’ve read any Allen stories on the Palm Beach Post website, you read something different — that the deal was not a straight three years and instead included a player option. That (the presence of a player option) was based on information I received prior to Allen’s introductory press conference. And that’s why I asked Pat Riley about the reports of a straight three-year contract, a question that Riley refused to directly answer.

Unfortunately, however, I made an assumption: that the option came after the second season, and governed the third season.

Today, the Miami Herald reported that the option is before the second season, and there is nothing tying the the Heat and Allen for a third season.

That report is accurate.

What does it mean?

It means that Allen took even less, in terms of total possible income, that anyone thought. He could have received roughly $6 million per season from the Celtics, according to reports. It turns out that $6 million will be roughly his maximum payoff from Miami.

It also that Allen has some flexibility, if the first season doesn’t go as well as he hopes — or even if it goes even better for him individually, and he simply wants to opt out to try to command more in the open market.

Finally, it means that the summer of 2014 has a chance to be even more interesting. That’s when LeBron James, Dwyane Wade and Chris Bosh can exercise opt-out clauses, and when Shane Battier’s contract expires. Now add Allen to that potential mix, if he opts in before the 2013-14 season to stay for the total two seasons in Miami.